Investing in a Vacation Property? Learn What You’ll Need to Have to Get A Mortgage Approved

With approximately one million people having purchased vacation homes in the last year, this type of residence is gaining popularity for those who are interested in a home in a beach setting or a vacation hot spot. However, while a second home can seem like a great purchase and solid investment opportunity, there are different requirements that go into this type of purchase. If you’re considering a vacation home, you may want to be aware of the following financial factors.

The Down Payment Amount

If you currently have a primary residence, you may be aware that you don’t need to put down 20% or even 10% in order to make a home purchase, but things are different when it comes to a vacation home. Because you will be taking on an additional mortgage, there is greater risk involved, and this means you will likely have to put in at least 10 percent. Because of this, many homebuyers utilize the equity they have in their first home to make up the down payment.

About The Credit Score

Most people that have a credit score of more than 500 have the ability to use a mortgage product and purchase a home, but if you’re buying a second property, you’ll need a higher credit score in order to facilitate the purchase. Because there is more risk involved, lenders will want to make sure you’re a good bet. In addition, if you do have a lower credit score, lenders like Fannie Mae may also expect you to put more down to decrease the risk involved for them.

The Income Required

Since you’ve been through the mortgage process for your first home, you’re probably aware that you debt-to-income (DTI) ratio needs to be a certain amount in order to qualify for a mortgage. While your DTI for a primary residence may be a little bit higher since it’s your only payment, this ratio will be lower for your vacation home since it’s higher risk. This means you’ll require a slightly higher income than for your primary residence in order to get approved.

Deciding to purchase a vacation home can be a very exciting concept for many people, but there are a number of different financial requirements that go along with buying another residence. If you’re in the market for a vacation property and are curious about what’s involved, give me a call to get you on the right track – J.P. Cook – 602-320-4253.

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3958 N 360th Drive Tonopah, AZ 85354

$499,000

4 Beds

2.5 Baths

2,122 SqFt

Status Active Under Contract

MLS # 6776962

Property Type Single Family Residence

Price Type --

Experience luxury living in this brand-new 2,945 SF home (total under roof) on over an acre in the most sought-after area of Tonopah, with breathtaking views of neighboring horses. Enjoy an open, spacious layout with high-end finishes and a modern kitchen featuring a BESPOKE 4-Door French Refrigerator, smart range, dishwasher, and microwave. The property offers a private driveway, an electric car charging station, and ample space for RVs or outdoor activities. With no HOA and private access, this home combines rural charm and modern elegance. Don't miss out—this is the one you've been waiting for!

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5103 S 355th Avenue Tonopah, AZ 85354

$499,000

4 Beds

2 Baths

1,950 SqFt

Status Active

MLS # 6731058

Property Type Single Family Residence

Price Type --

This brand new stunning new construction. Huge 4 bedroom 2 bath, 1950 sq ft open concept has a split-floor plan that offers a perfect blend of modern upgrades and convenience, 2 car garage. Amazing custom front door. Granite Counter Tops, New appliances. All this on 1.25 acres . All just 7 minutes from the freeway. NO HOA

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5136 N 31st Place Unit 612 Phoenix, AZ 85016

$499,000

2 Beds

2 Baths

1,224 SqFt

Status Active

MLS # 6751233

Property Type Apartment

Price Type --

Exceptionally & Beautifully Renovated +UPDATED - BILTMORE TERRACE at BILTMORE ESTATES Just Bring Your Toothbrush PEDESTRIAN FRIENDLY GATED & GUARDED GOLF COURSE Community w direct access to BILTMORE PLAZA SHOPPING CENTER for all your Starbucks, banking Safeway grocery +specialty Shops & Fine-Dining RESTAURANT needs! Conveniently located steps home! 1224'sf one-level w real PLANK WOOD flooring ... flows naturally w clean, contemporary & cohesive Great design throughout! Non-Smoking Original Owner - Breakfast Patio light & bright ultra-quiet LUXURY Community Solid-Built design. CLUBHOUSE +TWO Sun Drenched 2-POOLS +2- SPAS, FITNESS CENTER, quiet & beautiful grounds & community along the LINKS COURSE 3rd Green & Lakes! MUST SEE!

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2125 E Voltaire Avenue Phoenix, AZ 85022

$499,000

3 Beds

2.5 Baths

1,590 SqFt

Status Active

MLS # 6786070

Property Type Townhouse

Price Type --

The Agave - A rare combination of Space, Style, Quality, and Value where Design Matters. Be inspired by the warm tones and natural textures of the desert where the Sagebrush and Adobe interior color schemes boldly echo the beauty of The Agave. Modern, Flat-Panel Kitchen Cabinetry in Matte color-ways, Solid-surface, Spa-Inspired Flat-Panel vanity cabinets in natural-wood tone finishes in Bathrooms. Standard LVT flooring installed in the entire home, Quartz Countertops, and Tile shower surrounds. Standard Accent painted interior doors and jambs for a bold, effortless design touch. Ceiling fans included as well as EV prewire. This premium end location Quail Plan showcases an enclosed front patio, oversized 2 car garage, bonus loft space and second floor deck.

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10148 S Lillian Drive Apache Junction, AZ 85120

$499,000

5 Beds

2 Baths

1,976 SqFt

Status Active

MLS # 6787221

Property Type Single Family Residence

Price Type --

Better than new and ready for you to move in! Built in 2023, this immaculate 5-bedroom, 2-bathroom residence offers the perfect blend of modern design and functional living. Open floorplan, with a breakfast bar and room for a dining table, granite counters, stainless steel appliances, ample cabinets, and pantry. Nice sized bedrooms and great floorplan allowing everyone their own space. An abundance of storage space throughout the house. Step outside to a beautifully completed yard with real grass, stylish pavers, and a convenient double gate—ideal for entertaining and relaxation. No neighbor across the street and the convenience of being just steps away from a neighborhood park. Plus, water system is already installed.

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42355 W Somerset Drive Maricopa, AZ 85138

$499,000

4 Beds

2.5 Baths

2,993 SqFt

Status Active

MLS # 6760584

Property Type Single Family Residence

Price Type --

Upgraded and plenty of room for the entire family in this 2993sq ft 4 bedroom home located in Glennwilde subdivision. The home features large bedrooms, including a downstairs Master Bedroom, with custom shower, large upstairs loft, custom shutters, and brand new security door! The home is conveniently located across from a park for the whole families enjoyment. There's plenty of room for cars and storage in the large 3 car tandem garage. The subdivision includes numerous parks, 2 community pools with one that is heated during the winter, soccer fields, tennis courts, basketball courts and many other recreational opportunities.

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2833 Hidden Meadow Lane Bisbee, AZ 85603

$499,000

3 Beds

2 Baths

2,196 SqFt

Status Active

MLS # 6651882

Property Type Single Family Residence

Price Type --

Two parcels include almost 27 acres. Parcels 11057013 & 012. Located about 10 mins from Old Bisbee. Slump block home was built in1984. The upstairs is in renovation state. No further work will be completed. Two stories, main living area upstairs. Downstairs, has Two bedrooms divided by a Jack and Jill Bathroom. Access from downstairs to upstairs, either by interior elevator or exterior spiral staircase. To access the front door, on the upper level, a foot bridge was built through the trees. Upstairs, in the main living area, a traditional Russian brick fireplace. Huge oaks, boulders, and incredible topography can be appreciated from the deck. During Monsoons, the waterfall generates water through the properties creek, fills a man-made pond and hand dug well. Seller will carry short term.

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605 E Phoenix Street Payson, AZ 85541

$499,000

2 Beds

2 Baths

1,778 SqFt

Status Active

MLS # 6744537

Property Type Single Family Residence

Price Type --

Dreaming of a cozy retreat amidst the cool pines of Payson, Arizona? Welcome to your next home away from home! This beautifully renewed single-story gem sits right in the heart of Payson. As you step inside, you're greeted by fresh paint both inside and out, complemented by brand-new, low-maintenance flooring that stretches throughout the house. Imagine whipping up your favorite meals in a spacious, warm eat-in kitchen adorned with granite countertops and sleek stainless steel appliances. After dinner, gather in the large, welcoming central living room. With its gas fireplace and built-ins, it's the perfect spot to create memories that'll last a lifetime. Craving a private sanctuary? The split ranch floor plan ensures the owner's suite is your personal haven, featuring a luxurious master bath with a separate shower and indulgent jetted tub. Plus, there's a cozy guest bedroom and a flexible office or spare bedroom to fit all your needs. Step outside to an open and cool backyard, eagerly waiting for your inspiration. Whether it's a garden, play area, or relaxation spot, the possibilities are endless to craft your dream yard. Why wait? Come and experience the blend of comfort and elegance this Payson beauty offers. It might just be the home you've been searching for!

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3537 W Meander Road New River, AZ 85087

$499,000

3 Beds

2.5 Baths

2,142 SqFt

Status Active

MLS # 6797188

Property Type Single Family Residence

Price Type --

This delightful 3-bedroom, 2.5 -bath home is nestled on a serene 1-acre lot in the heart of New River. Offering breathtaking desert views, it combines the tranquility of country living with modern convenience. Features include:

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26264 W Matthew Drive Buckeye, AZ 85396

$499,000

2 Beds

2.5 Baths

1,846 SqFt

Status Active

MLS # 6759162

Property Type Single Family Residence

Price Type --

Stunning Sun City Festival Home in Buckeye - 55+ Living at Its Best! Welcome to this beautiful Pulte-built, single-story Spanish-style home in the highly sought-after Sun City Festival 55+ community. Built in 2018, this unique property sits on a large corner lot and features a private courtyard, perfect for enjoying Arizona's sunshine. Inside, the home offers two master bedroom suites, a versatile den/office space, and an open-concept kitchen filled with natural light from the courtyard. The kitchen shines with beautiful finishes, ideal for entertaining or relaxing at home. The oversized lot features an amazing swim spa—a rare find for this community! Additional highlights include an extended paver driveway and ample outdoor space, perfect for those who love privacy and extra room. Sun City Festival offers an active, resort-style lifestyle with amenities such as biking paths, clubhouse, recreation center, tennis courts, community pool and spas, Pickleball courts, and moreeverything you need for retirement living at its finest! Don't miss this unique opportunity to enjoy luxury, comfort, and community in Buckeye, AZ. Built in 2018 2 Master Suites + Den Oversized Lot Swim Spa

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11034 W Alabama Avenue Sun City, AZ 85351

$499,000

3 Beds

3 Baths

2,322 SqFt

Status Active

MLS # 6771461

Property Type Single Family Residence

Price Type --

INCOME INVESTORS!! This property has multiple possibilities!! Look what you get in this package: 1) Main House 2Bd./2Ba. Approx. 1500SF 2) Attached Apartment Rental Unit 1Bd./1Ba. Approx. 900SF 3) 3- Car Garage 4) Vacant Lot Approx. 5,000 SF. The property has a block wall enclosure. If your an income investor looking for a rental property with a steady income stream this could be the one. The vacant lot is being sold with home and has a separate parcel #200-87-082A. The entire property will be sold as-is as the seller will make no repairs. The possibilities here are endless.

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18809 N 39th Way Phoenix, AZ 85050

$499,000

3 Beds

2 Baths

1,350 SqFt

Status Active

MLS # 6768381

Property Type Single Family Residence

Price Type --

Beautiful 3-bedroom, 2-bath home with pool and spa! Move-in ready with a low-maintenance front yard and 2-car garage equipped with a car charger. Enjoy an open layout with spacious living and dining areas, 18'' tile floors, vaulted ceilings & plenty of natural light. The kitchen is equipped with lots of cabinet and counter space, stainless steel appliances & a mosaic backsplash. The roomy master suite includes a sitting area, his/her closets, and an en-suite bathroom with dual vanities. Unwind or host unforgettable gatherings in the backyard featuring a covered patio, sparkling blue pool, relaxing spa, and seating area for taking some sun. Don't miss the opportunity to own a wonderful home with a backyard made for entertaining!

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